Selling timber is something the timberland
owner does once or twice
in a
lifetime. Because it is only dealt with once or twice it makes it
difficult to
know the best methods by which to sell your timber.

When you sell your timber, you may sell it
either based on the
"shares" method or the "lump sum" method. The share method
is based on a percent of the actual board foot volume of timber, or
cordage of
wood removed and delivered to the saw mill. For example the buyer may
deal with
you on a 60% -40% bases. Where you receive 60% of the revenue from the
sale of
timber and he receives 40%. In this case the buyer usually will have
the
sawmill where he sells to make up two receipts and checks, one check
and one
receipt showing 60% of the revenue going to you, and the same showing
the 40%
going to him. This is usually done for every truck load of logs leaving
the
logging site. This "shares" type of sale does not generally give you
the best dollar price for your timber. However, if you have a small
tract of
timber it may be the only way you can arrange a sale agreement with a
buyer.

With the lump sum sale the buyer bids or
offers a total amount for
all the
timber removed. This type of sale is usually the most convenient type
of sale.
Using this method, you know exactly what you will get before agreeing
to sell.
With the shares basis, you do not know the exact total sales price
until the
timber has been cut and its volume is determined.

If possible, the sale should be made on a
sealed bid basis. Bidding
provides
for competition between buyers and will insure you receive maximum
value. To
get bids on your timber, you will need to prepare an announcement of
the sale.
This should contain:

Your name and mailing
address.

The location of the
timber (A US
Quadrangle Map is a great way of showing the location).

The size and type of
timber.

How the timber will
be sold (clear
cut, select cut, or marked).

The type of bidding
(lump sum or
shares).

The time limit on
harvesting (normally
one year).

Any special
requirements on the sale.

A statement allowing
you the right to
refuse all bids.

Get as many buyers as possible to bid on
your timber. This can be
done by
sending an announcement of sale to all potential buyers and by putting
an
advertisement in your local papers.

All sales should also be made with a
written contract. This will
protect you
and the buyer. Your state forester or a consulting forester can provide
you
with a sample contract.

Before considering any timber sale, you
should consult a
professional
forester. He can advise you on what to be sold and suggest possible
buyers in
your area. The Tennessee Division of Forestry has area foresters
available to
assist the owners in the sale of their timber.

You may also want to consider hiring a
consulting forester to help
you with
the sale. This would be particularly appropriate where the value of the
timber
is very high or the volume of timber to be cut is very large. A
consulting
forester knows the ins and outs of the timber market. He knows the type
of
timber you have and can accurately estimate its value. Usually he will
bring
you a greater dollar return from your sale than the cost to hire him.

The undersigned, the property
administrator , hereby offers for sale
and
invites bids for certain standing timber described on the attached page
and
located on approximately 110 acres of Landowner property
located in the
Dry
Valley area of Putnam County, Tennessee.

Bids for said timber will be accepted
until 1 o'clock PM on November
15, 2006, at the address above, at which time they will be opened.

The undersigned reserves the right to
reject any or all bids.

The purchaser will be required to sign a
timber sale agreement
specifying
the procedure and method of payment, time limit, and other conditions
of the
sale. A copy of the sale agreement will be available upon request to
interested
bidders before the specified time for opening bids.

Bidders may obtain permission to examine
the sale area by contacting
the
undersigned at the address and/or telephone number above.

In accordance with the above invitation to
Bid and subject to the
provisions
contained therein, the undersigned offers and agrees to purchase and
pay the
contained therein, the undersigned offers and agrees to purchase and
pay the
sum of $________________, for timber referred to in said invitation
subject to
acceptance of this bid.

The Purchaser agrees to buy and the Seller
agrees to sell timber
hereinafter
described on a portion (or portions) of his/her land near (Town or
Community) in ___________County, Tennessee, as shown on the
attached map.

The general area(s) from which subject
timber is to be removed is
marked on
the attached map of the Seller's property. Boundaries of specific
area(s) from
which timber will be removed are marked on the ground with colored
paint or
colored flagging tape which is (painted/tied) on trees and shrubs at
eye level
at approximately 25 foot intervals.

Alltrees included in this sale
have been marked with paint
on the
stump near the ground and at eye level.

The Seller estimates, but does not
guarantee, the volume of timber
included
in this sale as follows:

(FOR SAWTIMBER)

Tree Species

Number of Trees

Board Feet

(____Rule) 1/

-

-

-

-

-

-

-

-

-

(FOR PULPWOOD)

Tree Species

Standard Cords (128 Cu.fT.)

Pine

_______________________

Hardwood

_______________________

Total

_______________________

1/ Specify Doyle, International, or other log rule.

The Purchaser agrees to buy said timber in
strict compliance with
all the
following conditions and requirements: (include any or all the
following or
additional stipulations as may be applicable).

To pay the full purchase price of $_________________________
when
this sale agreement is signed. (OR To pay for said timber; in the
followings
manners_________________________

To post with the Seller a certified or
cashiers s check in the
amount of
$______at the, time this agreement is I signed This check constitutes a
performance bond which will be returned in full to the Purchaser when
timber
cutting operations have been completed provided the terms of this
agreement
have been fully met. If any conditions of this agreement are not
complied with,
the value of such damages or violations will be deducted from the
performance
bond, and the balance, if any will be returned to the Purchaser.

To cut and remove all merchantable timber
included in the sale
area(s) not
later than_____ (Date)_____ If additional time is needed, the
Purchaser
will submit a written request to the Seller at least_______days prior
to ___
(Termination Date). Consideration will be given such a request
provided the
Purchaser has done all in his power to cut and remove said timber in
the
allotted time and other sale conditions have been carried out in
satisfactory
manner and in good faith.

To cut all paint marked trees (including
those trees considered by
the
Seller to contain no commercial value, which have been marked with a
"X"). Any unmarked trees cut or damaged by carelessness will be paid
for at the rate of $________ per thousand board feet, ____________Log
Rule , as
estimated by the Seller.

Title to and responsibility for the above
mentioned trees shall pass
to the
purchaser as they are severed from the stumps, but the Seller retains
and the
Purchaser grants a vendor's lien on all forest products cut or removed
from the
above-mentioned property until paid in full.

Any marked trees which are uncut and any
cut forest products such as
logs,
tree tops, branches, slabs, edgings, and sawdust which are not removed
from the
Seller's property before the termination date of this agreement will
revert to
ownership of the Seller.

To exercise caution, to the fullest extent
possible, to prevent and
minimize
damage to unmarked trees, adjacent standing timber, and small trees
during
felling, skidding, loading, and hauling operations.

To consult and act only on the approval
and instructions of the
Seller in
the location and construction of access routes, haul roads, main skid
trails,
log landings, and sawmill sets. To locate haul roads, main skid trails
and log
landings at least 50 feet from streams and major drains.

To keep all roads used in connection with
this sale on the Seller's
property
clear of limbs, tops, and debris and in passable condition for normal
use.
Ditchlines and drains will be kept free from tree tops, limbs, and
other
debris.

To prevent trucks, skidders, and other
logging equipment form
operating in
streams; to avoid operating logging equipment within 25 feet of
streams; to
avoid crossing streams and drains and to skid logs away form streams
and drains
when possible; to drag trees, tree tops, and other logging debris which
may
fall into or across roads, streams, cropland and pastureland into an
adjacent
wooded area; to drag trees, tree tops, and other logging debris from
sloughs
and dry channels which may carry water when flooding occurs.

The Seller will have authority to
temporarily close down all or any
part of
the Purchases, operation when, in the opinion of the Seller, soil or
weather
condition ions are such that logging operations will lead to excessive
damage
to toad and, other site deterioration.

The repair and/or reimburse the Seller for
damages caused to fences,
gates,
bridges, roads, structures, equipment, crops, and other improvements
and
property of the Seller, incident to this sale operation.

To do all in his power to prevent and
suppress any forest fires on
the
Seller's property of the Seller, incident to this sale operation.

If it becomes necessary to service
equipment on the Seller's
Property, the
Purchaser will catch all oil, coolant, hydraulic fluid, fuel, or other
solidor fluid materials in an appropriate co container ' preventing
spillage of
any such material on the Seller's property, and transport such
materials to a
legal dump site.

To keep the Seller's property clean and
free from oil cans, garbage,
and
other litter.

The Purchaser will hold the Seller
harmless from any and all claims
arising
from damages to property or to the person of the Purchaser, his agents,
or his
employees which may arise or be incident to the use and occupation of
the
Seller's land or property.

It is mutually understood that any
violation of this agreement than
Purchaser, his agents, or his employees, as determined by the, Seller
may
constitute sufficient cause for immediate, oral suspension of the
timber sale
operation.

In the event the Purchaser and the Seller
are unable to agree on
differences
concerning damage appraisals or any other conditions of the sale, the
final
decision will rest with a committee composed of a representative
appointed by
the Purchaser, a representative appointed by the Seller, and a third
member to
be selected by the two appointed representatives.

The Seller agrees to grant the right of
ingress and egress to and
from the
designated sale area(s) across the Seller's land to guarantee title to
the
timber designated for sale.

AGREED TO, THIS ___________ DAY OF________
l9____ AT
________________________TENNESSEE.

_________________________
_____________________________

(Purchaser or Agent) (Seller or Agent)

THIS IS A SAMPLE AGREEMENT ONLY.
DUE TO THE
UNIQUE
CIRCUMSTANCES SURROUNDING INDIVIDUAL TIMBER SALES AND VARYING LEGAL
REQUIREMENTS,
THIS CONTRACT MAY NOT BE APPROPRIATE FOR YOUR USE. THE DEPARTMENT OF
AGRICULTURE, DIVISION OF FORESTRY, IN NO WAY WARRANTS THAT THIS WILL
SATISFY
CURRENT LEGAL REQUIREMENTS AND DOES NOT RECOMMEND THE USE OF THIS
CONTRACT
WITHOUT THE ADVICE OF COMPETENT LEGAL COUNSEL.

The average citizen knows less about
measurement of timber and wood
products
than almost any other commodities. Whereas most products are measured
in
familiar units such as pounds, gallons, inches, etc., standing
sawtimber and
sawlogs are measured in "board feet."

A "board foot" is a board measuring 12
inches long, 12 inches
wide, and 1 inch thick or its equivalent, e.g., a board 12 inches long,
6
inches wide, and 2 inches thick. In the marketplace sawtimber and
lumber are
bought and sold in units of thousands of board feet (MBF).

Measurements of board feet contained in a
stack of sawed lumber are
precise
because each board has a definite length, width, and thickness. In the
standing
tree or log, however, measurement of board foot volume is only an
estimate of
the volume that night be sawed from logs delivered to the mill.

The reason estimates of timber volume in
trees and logs cannot be
more
precise stems from the fact that trees are round. Thus, foresters and
the
timber industry are faced with the task of estimating volumes of lumber
that
might be sawed from cylinders. Volume estimates are further complicated
by
allowances that must be made for crook, sweep, and hidden defects which
reduce
the amount of lumber that can be sawed from trees and logs.

Many attempts have been made to devise
ways of estimating volumes
contained
in trees and logs. Various formulas, called log rules, have been
developed
which provide estimates of board foot volumes for both standing trees
and cut
logs. Volume tables based on each rule have been constructed to provide
estimates of board foot yield for a wide range of diameters and
lengths.

Two log rules are in common use in
Tennessee. The Doyle Rule,
developed in
1825, is still widely used by the timber industry throughout the South
and
Eastern United States. According to the Doyle Rule, allowances are made
for
slabbing and saw kerf, but because allowances for slabbing are so
large,
estimates of volume are highly inaccurate and inconsistent throughout
the range
of tree diameters. This results in gross underestimates of lumber
volumes,
especially for logs in smaller diameter classes.

The International Log Rule is based on a
reasonably accurate
mathematical
formula which not only makes realistic deductions fur slabbing and saw
kerf,
but also for log taper, edgings, and board shrinkage. As a result, the
International Rule has proved to be the most consistent and accurate
rule
available. It has been officially adopted for use by several states and
is
employed by the United States Forest Service for forestry research.

A comparison of the differences in volume estimation according to
the
International and Doyle

Rules for trees of three diameter classes is shown in the table
below.

Estimated Board Foot Volume in Trees Containing One (1) 16-Foot Log

DBH 1/

International Rule

Doyle Rule

Difference

Percent

10

36

22

-22

-61.1

20

171

135

-36

-21.1

30

403

376

-27

-6.7

I/ Diameter at breast height, a point 4.5 feet from the
ground.

In Tennessee the vast majority of sawmills
and timber buyers use the
Doyle
Rule when purchasing standing timber and logs. Tradition is probably
one reason
for its wide use today, but because actual lumber yields are always
higher when
timber is purchased according to Doyle, its popularity among buyers is
understandable. If asked to submit a bid on timber estimated according
to the
International Rule instead of Doyle, buyers would quote a lower price
per
thousand board feet.

The Division of Forestry utilizes the
International Rule when
estimating
timber volumes for timber advertised
for sale
on the State Forests. Although the estimated lumber yield according to
the
International Rule is invariably higher than for the Doyle Rule, the
reason the
Division uses International is simply that it provides the most
accurate
estimate available of the true volume of standing timber and logs. The
Division's use of International is not for the purpose of charging
landowners
more for marking their timber.

When contracted to mark timber for private
landowners, however, the
Division's policy is to provide estimates of timber volumes according
to both
the International and Doyle Rules, furnish explanations for differences
between
estimated yields, and encourage landowners, provided with the best
information
available, to negotiate the best timber sales possible.

List
of Loggers and Sawmill Operators

Linked is a list of loggers and sawmill
operators
who conduct logging operations in the Upper Cumberland.